A Unique Bond Rally Play

Published on
September 5th, 2019
9 minutes

A Unique Bond Rally Play

Trade Ideas ·
Featuring Dan Russo

Published on: September 5th, 2019 • Duration: 9 minutes

Dan Russo, CMT, chief market strategist at Chaikin Analytics, presents a unique real estate analytics company as a way to play the rally in bonds. In this interview with Jake Merl, Russo walks through the bullish signals from his proprietary model, discusses how much upside he expects for the stock, and notes key risks to the trade. Filmed on September 4, 2019.



  • JP
    John P.
    5 September 2019 @ 18:31
    Costar is basically a monopoly positioned software company with minimal exposure to the real estate markets. The company I work for pays costar thousands each month and it basically goes up 4% annually with minimal additional services. The only reason we continue to use them is that their isn't another option. They're doing a lot to justify their insane 76 p/e ratio. This includes filling up our software interface with annoying ads now. Their recent revenue growth has been simply to buy other online listing companies such as lands of america, bizbuysell, and apartments.com. I'm really not sure how they could grow revenue much further from here, but it would probably involve moving into new services, moving into international markets, or competing directly with zillow. The stock is very over bought and RSI just dipped back below 70 on the weekly. Time to cash out for the holders. As for exposure to commercial real estate markets, I'd go almost anywhere but here.
    • OG
      Oliver G.
      7 September 2019 @ 12:01
      Definitely agree that there are better options out there, especially in the residential real estate market. For example Deutsche Wohnen (DWNI), which has taken a hammering this year after the local government in Berlin drafted a proposal to introduce rent ceilings locally. It now trades at around 60% book value which incredibly cheap especially considering that they recently managed to sell 6000 units in Berlin at around 1/3 above book value! Also their dividend of around 3% is not bad either. Vonovia (VNA) is also a good option which is larger and more diversified, also paying around a 3% dividend. Mobimo (MOBN) is also a good option if one does not want EUR exposure. I think also using the available ETFs (XLRE etc.) is not a bad play. All in all though I would agree that Real Estate will continue to outperform, especially if rates continue to fall...
    • @F
      @HoodRichFABIO F.
      18 September 2019 @ 04:28
      Hey RV !!! RV plz interview Oliver In the below teoly post! He’s direct and sounds more intelligent than the guy interviewed in this video and has a SPECTRUM of suggestions along this theme!!
  • BM
    Beat M.
    6 September 2019 @ 05:54
    I‘ve heard 14, 15, 16 trillion of negative interest rates over the last three months. How much is it? It grows at this rate?